Short Stories: Your Monthly Business Wrap for August

Global Trade Tensions

The US’ increasingly political approach to trade enforcement is evident as India now faces a 50% tariff—25% as a “reciprocal” duty plus another 25% linked to its Russian oil imports. Brazil has been slapped with a 50% tariff tied to its handling of the Jair Bolsonaro prosecution and alleged curbs on free speech. Switzerland, meanwhile, confronts 39% duties on around 10% of its exports, prompting concern over impacts on its export-heavy economy. (see p.42)

Tax Bill Upgrade

The Lok Sabha cleared the new Income Tax Bill, with Finance Minister Nirmala Sitharaman tabling a revised draft that absorbed most recommendations of the Parliamentary Select Committee. Key changes include clearer definitions, restored deductions, easier compliance for individuals and changes benefiting taxpayers, MSMEs and non-profits. The bill modernises the tax regime, making it more litigation-resistant.

Gaming Ban Fallout

On August 20, after the Lok Sabha passed the Promotion and Regulation of Online Gaming Act, 2025, banning real-money games, industry experts flagged the lack of consultation. The $25bn sector now faces uncertainty, with nearly two lakh jobs at risk. Analysts warn the ban could drive betting offshore and fuel money laundering. Several start-ups have already shut down real-money gaming operations, while others edge closer to a complete shutdown.

Profits and Payouts

Corporate Q1 earnings showed resilience across banking but mixed signals in technology. HDFC Bank’s net profit rose 12% YoY to ₹18,155 crore with net interest income (NII) up 5%. ICICI Bank’s profit increased 16% to ₹12,768 crore. State Bank of India’s profit after tax rose 12% to ₹19,160 crore, beating estimates. In technology, Infosys reported a 9% profit rise to ₹6,921 crore with revenue up 8%. HCLTech’s profit fell 10% to ₹3,843 crore below expectations.

Stricter UPI Norms

The National Payments Corporation of India has issued new guidelines to improve Unified Payments Interface (UPI) efficiency and reduce network strain. Daily caps have been set on balance enquiries and account list requests, while auto-debits will be processed only during non-peak hours. Payment service providers must comply, face penalties or even suspension of new customer onboarding. By prioritising customer-initiated actions, NPCI aims to ensure smoother transactions.